Question

As per the recent (April 2024) change done to SGrBs, w hich of the following statements is NOT true about Foreign Institutional Investors (FIIs) investing in Sovereign Green Bonds (SGrBs)?

Read the following paragrph and answer question no 19 & 20. Sometime back in one of the Union Budget, the FM announced the government’s decision to issue SGrBs, a kind of government debt that specifically funds projects attempting to accelerate India's transition to a low-carbon economy. Funds raised through SGrBs are earmarked exclusively for green projects, ensuring transparency and accountability in fund utilization. SGrBs typically offer lower interest rates compared to Government-Securities (G-Secs), reflecting their alignment with sustainable development objectives. Issuance of SGrBs requires adherence to internationally recognised green standards and certification processes to ensure the credibility of funded projects.
A FIIs investing in SGrBs help reduce pressure on domestic lenders, providing more capital for green projects.
B The inclusion of FIIs allows more funds to be allocated towards India's 2070 net zero goals.
C FIIs investing in SGrBs help attract more capital for non-green projects like fossil fuel extraction and nuclear power.
D The investment by FIIs in SGrBs helps boost the sustainability goals of the Indian economy by reducing its carbon footprint.
E FIIs' investments bring knowledge and expertise in green technology, benefiting India's green infrastructure projects.
Practice Next

Hey! Ask a query